EURUSD is on the rise
Andrey Goilov | Jun 13, 2023 14:58
The market's most traded currency pair climbed to 1.0800 on Tuesday.
The market has a risk appetite at the beginning of a crucial week, with the meetings of the Federal Reserve System and the European Central Bank in the foreground.
The Fed will make its interest rate decision by Wednesday night. The rate will most likely remain at 5.25% per annum. In any case, with the US inflation statistics for May expected today, the market will be able to see the complete picture.
The ECB will meet on Thursday to agree on the cost of lending. The interest rate will most likely increase by 25 basis points, reaching 4.00% per annum. It is extremely important that the ECB continues combating inflation proactively.
Note that the spread between the Fed and ECB interest rates is narrowing. This means there will be less fundamental support for the euro.
EUR/USD on H4 has completed a wave of correction to 1.0800. A consolidation range is expected to develop around this level today. With an escape from this range downwards, a new wave of decline to 1.0596 might start. The target is local. After it is over, a new wave of correction to 1.0822 is expected.
Technically, this scenario is confirmed by the MACD: its signal line is above zero and expected to drop to new lows.
On H1, a structure of a wave of growth to 1.0800 has formed. A new wave of decline to 1.0727 is expected. The target is first. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is above 80 and today might drop to 50. If this level breaks, the line might drop deeper to 20.
Disclaimer: Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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